Income Tax and Corporate Tax MCQ Questions and Solutions with Explanations

Income Tax and Corporate Tax MCQ Questions and Solutions with Explanations | Commerce

Income Tax and Corporate Tax MCQ Questions and answers with easy and logical explanations. Commerce provides you all type of quantitative and competitive aptitude mcq questions with easy and logical explanations. Income Tax and Corporate Tax MCQ is important for exams like B.COM, M.COM, BBA, BBM, CA, CS, CMA, CPA, CFA, UPSC, NET, Banking and other commerce department exam. Page-10 section-7

Which of the following provision/s of salary is/are included in accordance with the provisions of Section 17(1) of Income Tax Act, 1961?

A) Any annuity or pension B) Any gratuity C) Any fees, commission, perquisite or profits in lieu of or in addition to any salary or wages D) All of the above

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Answer & Solution

Answer: Option D

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Gain arising on transfer of capital asset is charged to tax under the head 'Capital Gains'. Income from capital gains is classified as 'Short-term Capital Gains' and 'Long-term Capital Gains'. Generally, long-term capital gain is charged to tax at the following rates (plus surcharge and cess as applicable)?

A) 10% B) 15% C) 20% D) 30%

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Answer & Solution

Answer: Option C

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Which is an indirect tax?

A) Sales tax B) Income tax C) Toll tax D) All of these

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Answer & Solution

Answer: Option A

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Return filed after the due date is called:

A) Revised return B) Best return C) Belated return D) Defective return

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Answer & Solution

Answer: Option C

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If payment of royalty is paid outside India and no tax at source has been deducted, then such expenses will be

A) allowed as deduction B) disallowed C) exempt D) None of these

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Answer & Solution

Answer: Option B

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Unilateral relief means a method of providing relief from double taxation in which

A) home country of the taxpayer provides tax relief, where no mutual agreement has been entered into by the two countries for providing relief from double taxation B) government of two countries, enter into an agreement to provide relief against double taxation on mutually agreed basis C) Both A and B D) None of the above

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Answer & Solution

Answer: Option A

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Which of the following statements are true in context of surcharge on Income tax?

A) Income Tax surcharge is an additional charge payable on income tax B) Income Tax surcharge is an added tax on the taxpayers having a higher income inflow during a particular financial year C) The surcharge depends upon the Income Tax slabs D) All of the above

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Answer & Solution

Answer: Option D

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Notice of demand is served under which Section?

A) 139(1) B) 154 C) 139(3) D) 156

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Answer & Solution

Answer: Option D

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The depreciation on the assets in case of new plant and machinery is:

A) Depreciation sum equals to 20% of the actual cost of new plant and machinery B) Depreciation sum equals to 50% of the actual cost of new plant and machinery C) Depreciation sum equals to 30% of the actual cost of new plant and machinery D) Depreciation sum equals to 10% of the actual cost of new plant and machinery

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Answer & Solution

Answer: Option A

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100

Match the following.

List-I	List-II
a. Amount deposited in PPF	1. 80-IA
b. Profits and gains from undertakings engaged in infrastructure development	2. 80-G
c. Contribution to National Defence Fund	3. 80-IAB
d. Profits and gains by an undertaking engaged in the development of special economic zone	4. 80-C

A) a-4, b-3, c-2, d-1 B) a-4, b-1, c-2, d-3 C) a-4, b-1, c-3, d-2 D) a-2, b-1, c-3, d-4

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Answer & Solution

Answer: Option B

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